News and Reviews USA Exclusive - OK.. After the historical low of 776 points yesterday the DOW is up again. No, sorry it is again going down. Oh good.. it is up again.. what a relief but the pendulum continues. You may be wondering if one is reciting kindergartner rhymes or what? No, absolutely not. This is the story of Great America Stock Market and another September Crisis of America. Click to read on …

The Markets that show the best of the growth in last 1.5 decades, having its player behave like semi-God under Laisse-faire (Free Economy) is suddenly hoping, praying and begging that Government intervention (read Washington DC) to bail out. If not done quickly (read USD 700 billion donation to them), which actually means, if they are not saved, then the Wall Street (read Downtown Manhattan, NYC) will bring down the entire Financial World with it. If that happens, which I strongly doubt, the accepted “Capitalism” based “American Dream” will fail.

Couple of moot points from my end to prop this story..

1. This USD 700 billion will go where? Definitely not retail customers (read Main Street) but to the Treasury Secretary (not even FED) to help him save Investment Banks / Hedge Funds and of course AIG (again? YES. Definite as their exposures are still huge). If we know that the remaining 2 big iBanks i.e. Goldman Sacks and Morgan Stanley has converted themselves to Commercial (read main Street) Bank last week, then why this money is needed and for whom?

2. If this crisis is related to Mortgage defaults (home-owners not paying or not able to pay) then the USD 700 million should be used to create a Trust Fund to bail out individuals through re-structured loans. Which means, the end lending institutions (and they are not iBanks like Goldman or Morgan) should be given Govt. based window to re-structure the payment schedule to absorb the interest losses (read IRR) due to delay in re-payments of Housing Loans. Will it not be NEW-DEAL akin to President FD Roosevelt proposed during 1929 Great Depression? Did he not say, to create jobs, it is OK to dig and fill the roads? This way, American Economy will remain lubricant and so will the ‘American Dream’. This strategy will expose the real culprits at the Wall Street, if any, creating this mess.

3. The new twist in this whole story that USD 700 billion is actually now required for keeping the American Credit Market alive is a bit exaggerated. All the great companies of America (list below – mostly with exception to AIG, Goldman and Citi) are Cash Rich with high liquidity. They are sitting on Huge Funds with limited options to park it in Safe Investments. They don’t really need money now, atleast for the near future. Also, this is the time to test the real strengths of individual companies, including SME’s (Small and Medium Enterprises) with solid Assets and Positive Cash flows based Business Model vis-à-vis mere a ‘Trading Company’ (read iBanks / Hedge Funds / Wall Street Brokers etc.)

Any way, this argument will go long and wide without a real conclusion. I don’t want to be a person adding more to the current confusion and hence taking this opportunity to make few suggestions / predictions..

1. The USD 700 billion bail out is not a great bet for Americans on Main Street. It will just help Rich and Powerful at Wall Street. Trust me, your retirement money is not at stake, unless you have to withdraw tomorrow.

2. Market, as it showed today, will learn that if Government is not bailing out, then it will correct itself. It sure will as America is still the largest economy in the world. The 13 trillion dollar US economy is having most of the money in America only and not abroad, so the markets through smart investors will come back soon. Very Soon.

3. In next one month, during and quickly after the election, things will calm down with bad and wounded companies folding down or at best merging. The survivors will be stronger and will be able to garner business opportunities better. Key is to pick those companies now and that is my attempt here. (List below)

4. Americans are really hard working people with huge bent of innovations. This spirit will keep them ahead of the game for long-long time to come without any tangible competition. Yes, American leaders must keep India, China and Russia in good books to reap the leadership benefits for the next generation.

5. The Wall Street mess extended to Main Street will give a good lesson to people at the helm, to realize that if any company or industry is making too much of money on trading basis only, it must be bending rules some where. Hence oversight is required. As always, wealth creation is tough, tedious and time consuming process.

6. The hard core ideology of America i.e. Capitalism and Growth through Top-Down approach is a correct one. Any attempt to change that will completely change the socio-economic-political fabric of America. Hence must be resisted.

Get your financial security and wealth through TOP 30 AMERICAN COMPANIES

There is an old adage – “If Fundamentals are Strong, the economy will Grow. Sure”, and it is true even today for many American companies. Here is my pick of Great American Companies, which I feel are very strong even at these trying times. Yes, their Stock Prices has taken a beating, across the board, but they still present great opportunities for current and future growth. My Top 30 AMERIFCAN COMPANIES pick is based on their current Business Model / International Exposure and Balance Sheet. You may want to pick them and get wealthy soon.

TOP 30 American Companies - MKJ Pick, Oct 2008

DISCLAIMER / IMPORTANT - This list is just the recommendation and not solicitation. Incase, you are buying these stocks after reading my article, pls. take informed decision based on your Risk Appetite and Your Brokers / Bankers advice. I or the websites publishing my article will not take any responsibility what-so-ever.

The total Portfolio Investment Value (PIV) could soon touch as high as USD 250K if the above stocks are picked in next in 24 hrs and are held for minimum 12 months plus period.

DISCLAIMER / IMPORTANT - This list is just the recommendation and not solicitation. Incase, you are buying these stocks after reading my article, pls. take informed decision based on your Risk Appetite and Your Brokers / Bankers advice. I or the websites publishing my article will not take any responsibility what-so-ever.

Manish K. Jaiswal
USA